ADCOM may take legal action against Ringing Bells

ADCOM said that it ​had ​sold mobile handsets to Ringing Bells for Rs 3,600 a unit ​but was unaware of its plans to resell the device at Rs 251Danish Khan | ETTelecom | Updated: March 05, 2016, 09:30 IST

File photoAdvantage Computers (ADCOM),a domestic handset maker, Friday, said that it could take a legal action against Ringing Bell, the company behind the world’s cheapest smartphone, if the ongoing fiasco impacts ADCOM's brand name or it subsequently faces any other kind of losses.

ADCOM said that it ​had ​sold mobile handsets to Ringing Bells for Rs 3,600 a unit ​but was unaware of its plans to resell the device at Rs 251.

“We sold the handsets to ‘Ringing Bells’ earlier, like we sell ADCOM mobiles to lacs of users. We were absolutely unaware of the reselling plans of the company in question,” Sanjeev Bhatia, Founder & Chairman, Advantage Computers (ADCOM), said in a statement.

“To clear the air around, I would like to underline few facts pertaining to case, as this scam exhibits the potential of maligning our brand name ADCOM which is our trademark since 2001,” he added.

Already mired in a number of controversies over ultra-cheap pricing, and legal battle with their BPO partner Cyfuture, Ringing Bells has also faced queries from Income Tax department, the Enforcement Directorate and Department of Electronics and IT.

“Touted to be the biggest scam of the millennium, Freedom 251, had recently announced that it would give out 25 lakh handsets in the first phase before June this year….‘Ringing Bells’ was not only accused of running a disgraceful ploy, but has also relabeled our brand ADCOM,” Bhatia further added.

ED officials are understood to have quizzed the promoters of the company on their business model.

Amid controversies, Ringing Bells recently started refunding customers who paid upfront for the device called Freedom 251 after intense scrutiny of its business model and allegations of fraud.

CCAvenue, the payment gateway used by Ringing Bells on its website, told ET that it has started refunds worth Rs 84 lakh for 30,000 transactions made by about 14,800 unique customers. Payment for the smartphone will now be accepted only on delivery for all the 25 lakh bookings the company received.